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China’s Huaneng to reduce spot coal purchases

• Thursday, July 9, 2020
• Source:ferro-alloys.com

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• Keywords:China Huaneng spot coal

[Ferro-Alloys.com]  

China's major state-controlled power generating company Huaneng has announced plans to reduce its summer restocking of domestic spot coal. The move comes amid soaring domestic market demand and could help to slightly dampen domestic prices.

 

Power plants operated by Huaneng should restock with spot coal only if "prices are low", Huaneng said yesterday. The plants should not buy coal at market prices, or should at least reduce the amount they buy from the spot market, Huaneng advised.

 

The rainy weather in many parts of China may reduce power use for air-conditioning. And the increasing availability of hydropower is likely to squeeze demand for coal-fired power. The national meteorological centre has predicted storms in south and north China later today and tomorrow, as well as persistent rain in east China later this week.

 

Source: argusmedia

 

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